ComfortDelGro    Last:1.28    -0.01

ComfortDelGro fundamentally strong but price weak

Taxi business in Singapore is kind of protected by the gov because it provides an option for those retrenched or those unable to seek employment. In this sense, the gov retains the benefits accorded to taxis like exclusive use of taxi stands, waiver of child seats and tax deductions.

When the music stops (ie: either grab or uber gives up), cdg should do better especially after it has woken up to face the harsh reality of technology disruption and should have made some improvements to its business model.

 

this is a smart guy understanding wat i am saying.. its nv abt how many % taxi biz contributing.. its about how much money chasing e market share..and how much more they are gg to burn on a losing battle..

Observers      ( Date: 01-Dec-2017 15:42) Posted: I think CDG management should send a clear signal via press release/SGX announcement its intention with their taxi business going forward. If they pledge not to throw good money after bad i.e. engage in a cash burning exercise ala Uber/Grab business model, then I think the downside should be limited as there will still be cashflow available for dividend payment at the group level from its other businesses. Right now, that uncertainty is proving uncomfortable to investors, institutional or retail, who depend on the dividends for meeting obligations elsewhere. alexchew      ( Date: 01-Dec-2017 14:45) Posted: comfort taxi biz... hmmm... how about its disel, vicom etc.. intangible effect of its " lao da" status in singapore..  you better hope comfort dies quickly rather than a slow death....

 

I think CDG management should send a clear signal via press release/SGX announcement its intention with their taxi business going forward.

If they pledge not to throw good money after bad i.e. engage in a cash burning exercise ala Uber/Grab business model, then I think the downside should be limited as there will still be cashflow available for dividend payment at the group level from its other businesses. Right now, that uncertainty is proving uncomfortable to investors, institutional or retail, who depend on the dividends for meeting obligations elsewhere.

alexchew      ( Date: 01-Dec-2017 14:45) Posted: comfort taxi biz... hmmm... how about its disel, vicom etc.. intangible effect of its " lao da" status in singapore..  you better hope comfort dies quickly rather than a slow death....  kangaroo11      ( Date: 01-Dec-2017 12:51) Posted: taxi is only 1/3 of cdg business. assuming taxi revenue drop 50%, net impact minus 16-17% only, how to die

 

comfort taxi biz... hmmm... how about its disel, vicom etc.. intangible effect of its " lao da" status in singapore.. 

you better hope comfort dies quickly rather than a slow death.... 

kangaroo11      ( Date: 01-Dec-2017 12:51) Posted: taxi is only 1/3 of cdg business. assuming taxi revenue drop 50%, net impact minus 16-17% only, how to die? alexchew      ( Date: 01-Dec-2017 11:06) Posted: you underestimate the power of money.. they can burn until the rest of the companies go into non-existence

 

Kinda agree with u.wait n wait n wait for a good bargain

xxadidasxx      ( Date: 01-Dec-2017 14:29) Posted: Comfort is a making money company. Uber and grab is burning money so end of the day comfort just relex and drop abit Profit and let them burn see how long they can last

 

Comfort is a making money company. Uber and grab is burning money so end of the day comfort just relex and drop abit Profit and let them burn see how long they can last

 

taxi is only 1/3 of cdg business.
assuming taxi revenue drop 50%, net impact minus 16-17% only, how to die?

alexchew      ( Date: 01-Dec-2017 11:06) Posted: you underestimate the power of money.. they can burn until the rest of the companies go into non-existence. seba240698      ( Date: 01-Dec-2017 11:03) Posted: If taxi business market share is that easy to take, CDG would have lost half of its current market share since 2003, when LTA allowed other taxi companies to come into the market. Before 2003, only 2 taxi companies were in SIngapore, CDG and SMRT, after 2003, 4 more new taxi companies started their business in Singapore. None can comepte with CDG till today.  So 10 years after 2003 came Uber and Grab with slightly different marketed concept. For your information, 3rd party ride sharing platform were already in Singapore before Grab/Uber came in, NTUC was one of them, all these compaines couldn' t survive. The only differnce in Grab/Uber are, IMHO and sorry to be sacrastic, they are burning money while other companies (NTUC and others), are not.

 

Prefer to let it go 2.08 than CFD short and buy back.. long a bit risk as can go 1.9x anytime.

seba240698      ( Date: 01-Dec-2017 09:42) Posted: This stock swings between $2 to $2.08, very good for opportunitic traders, but for investors, patience is the key.

 

seems to have found a bottom at 1.99/2.00

however at only 5%, its not worth the risk for dividend holdings, might be more suitable for capital gains play.. imo

seba240698      ( Date: 01-Dec-2017 09:42) Posted: This stock swings between $2 to $2.08, very good for opportunitic traders, but for investors, patience is the key.

 

I agree totally with you that money makes the world go round.
But lets do a thought ecperiment now.
If Grab kills CDG, it will most likely stop incentives to drivers and stop promo codes to pax and even surge prcing whole day.
Then what will happen? pax will want to go back take taxi, lobby to govt and etc....
Then don' t you think another company will easily come in to snatch the market share of Grab, since Grab is not burning money anymore?
So in summary, any coy who want a pie of the taxi business market must burn money, meaning CDG is not making excessive money, so market forces is a very good way to balance the price, ideally.
My 2-cent.
 

alexchew      ( Date: 01-Dec-2017 11:06) Posted: you underestimate the power of money.. they can burn until the rest of the companies go into non-existence. seba240698      ( Date: 01-Dec-2017 11:03) Posted: If taxi business market share is that easy to take, CDG would have lost half of its current market share since 2003, when LTA allowed other taxi companies to come into the market. Before 2003, only 2 taxi companies were in SIngapore, CDG and SMRT, after 2003, 4 more new taxi companies started their business in Singapore. None can comepte with CDG till today.  So 10 years after 2003 came Uber and Grab with slightly different marketed concept. For your information, 3rd party ride sharing platform were already in Singapore before Grab/Uber came in, NTUC was one of them, all these compaines couldn' t survive. The only differnce in Grab/Uber are, IMHO and sorry to be sacrastic, they are burning money while other companies (NTUC and others), are not.

 

What makes you  think Uber doesn' t have $ to burn. Look at Amazon, it built up it' s empire through debts. They don' t care, as long they can increase their revenue.

MonkeyKingGod      ( Date: 01-Dec-2017 10:11) Posted: haha it is sustainable of cos! Uber' s  third-quarter loss widens to $743 million CNBC-28 Nov 2017 Uber' s  quarterly adjusted losses widened to $743 million, up 14 percent from the previous quarter, the Financial Times reported on Tuesday. Source:  Uber' s  3rd-Quarter Net Loss Widens to $1.46 Billion and for Grab - doubt they dare to report also, not making since day 1

 

Seems like Grab/Uber need to keep provide promo and burn $ for this biz.
CDG which still a profit Co from other sources. They might just waiting for Grab/Uber to burn more and more $ before they CDG would start coming out with other plan on track. A Co which affected may not just doing nothing as I believe some other plan behind.
( Just air out for xchange knowledge as well no encourage for buy/sell )

seba240698      ( Date: 01-Dec-2017 11:03) Posted: If taxi business market share is that easy to take, CDG would have lost half of its current market share since 2003, when LTA allowed other taxi companies to come into the market. Before 2003, only 2 taxi companies were in SIngapore, CDG and SMRT, after 2003, 4 more new taxi companies started their business in Singapore. None can comepte with CDG till today.  So 10 years after 2003 came Uber and Grab with slightly different marketed concept. For your information, 3rd party ride sharing platform were already in Singapore before Grab/Uber came in, NTUC was one of them, all these compaines couldn' t survive. The only differnce in Grab/Uber are, IMHO and sorry to be sacrastic, they are burning money while other companies (NTUC and others), are not.

 

you underestimate the power of money.. they can burn until the rest of the companies go into non-existence.

seba240698      ( Date: 01-Dec-2017 11:03) Posted: If taxi business market share is that easy to take, CDG would have lost half of its current market share since 2003, when LTA allowed other taxi companies to come into the market. Before 2003, only 2 taxi companies were in SIngapore, CDG and SMRT, after 2003, 4 more new taxi companies started their business in Singapore. None can comepte with CDG till today.  So 10 years after 2003 came Uber and Grab with slightly different marketed concept. For your information, 3rd party ride sharing platform were already in Singapore before Grab/Uber came in, NTUC was one of them, all these compaines couldn' t survive. The only differnce in Grab/Uber are, IMHO and sorry to be sacrastic, they are burning money while other companies (NTUC and others), are not.

 

If taxi business market share is that easy to take, CDG would have lost half of its current market share since 2003, when LTA allowed other taxi companies to come into the market. Before 2003, only 2 taxi companies were in SIngapore, CDG and SMRT, after 2003, 4 more new taxi companies started their business in Singapore. None can comepte with CDG till today. 
So 10 years after 2003 came Uber and Grab with slightly different marketed concept.
For your information, 3rd party ride sharing platform were already in Singapore before Grab/Uber came in, NTUC was one of them, all these compaines couldn' t survive.
The only differnce in Grab/Uber are, IMHO and sorry to be sacrastic, they are burning money while other companies (NTUC and others), are not.
 

 

haha it is sustainable of cos!

 

Is it substainable with their declining revenue and profits.
Losing market share too.
Surface problems enough to bring it $1.80. Management needs a big change.

xxadidasxx      ( Date: 30-Nov-2017 20:21) Posted: Comfort pay around 4.4% on dividend is one of the highest dividend pay out in Singapore .drop in taxi revenue is nothing new and their main core business is not on taxi they have 6 other area of business and more income will comes in for DTL and NEL and public transport daxdax18      ( Date: 30-Nov-2017 15:51) Posted: Whats the strategy? for dividend play? or looking for a recovery in share price

 

This stock swings between $2 to $2.08, very good for opportunitic traders, but for investors, patience is the key.

 

We are talking about alliance, sharing of platform and fleet. CDG is too small to buy Uber.

Observers      ( Date: 01-Dec-2017 08:49) Posted: Uber is on course to post record losses in 2017, according to data direct from the company. From January to September, Uber lost US$2.9 billion &ndash that&rsquo s compared to US$2.8 billion for the whole of 2016. If CDG and Uber alliance goes forward, how much cash burn will Uber ask CDG to tank? Stanton      ( Date: 01-Dec-2017 08:39) Posted: Agree with what u said. Taxis still has an advantage in that they can be flagged down along the street. All CDG needs is a good platform via alliance with Uber to put them back in the running. Their 15,500 fleet will double Uber's current fleet of 15,000 cementing Uber's number 1 position in Singapore. Uber will be desperately chasing CDG. So it is probably ironing out the details of the alliance. Just a matter of time. Be patient

 

Uber is on course to post record losses in 2017, according to data direct from the company.

From January to September, Uber lost US$2.9 billion &ndash that&rsquo s compared to US$2.8 billion for the whole of 2016.


If CDG and Uber alliance goes forward, how much cash burn will Uber ask CDG to tank?

Stanton      ( Date: 01-Dec-2017 08:39) Posted: Agree with what u said. Taxis still has an advantage in that they can be flagged down along the street. All CDG needs is a good platform via alliance with Uber to put them back in the running. Their 15,500 fleet will double Uber's current fleet of 15,000 cementing Uber's number 1 position in Singapore. Uber will be desperately chasing CDG. So it is probably ironing out the details of the alliance. Just a matter of time. Be patient seba240698      ( Date: 01-Dec-2017 07:36) Posted: I keep the shares for dividends and long term growth. If alliance successful many up 20 cents, if alliance not successful, likely price remain at $2 or maybe $1.90. You just need patience. My prediction is this stock is likely to slowly go up with or without Uber alliance. But must wait for 1 to 2 years. Grab's impact to CDG is minimal. And next year I see further weakening of Grab of getting good, committed drivers who will stay long with them, unless they roll out even more attractive package for CDG drivers. If competing with drivers itself, Grab has no match to CDG. The only game changer is driverless taxis, but that is really a very long time away.

 

Agree with what u said. Taxis still has an advantage in that they can be flagged down along the street. All CDG needs is a good platform via alliance with Uber to put them back in the running. Their 15,500 fleet will double Uber's current fleet of 15,000 cementing Uber's number 1 position in Singapore. Uber will be desperately chasing CDG. So it is probably ironing out the details of the alliance. Just a matter of time. Be patient

seba240698      ( Date: 01-Dec-2017 07:36) Posted: I keep the shares for dividends and long term growth. If alliance successful many up 20 cents, if alliance not successful, likely price remain at $2 or maybe $1.90. You just need patience. My prediction is this stock is likely to slowly go up with or without Uber alliance. But must wait for 1 to 2 years. Grab's impact to CDG is minimal. And next year I see further weakening of Grab of getting good, committed drivers who will stay long with them, unless they roll out even more attractive package for CDG drivers. If competing with drivers itself, Grab has no match to CDG. The only game changer is driverless taxis, but that is really a very long time away.